Biden plans to impose heavy taxes on rich Americans

    It is reported that the Biden administration will announce a tax hike plan for the riches on April 28. It proposes to nearly double the capital gains tax rate of the riches to 39.6% plus the existing investment income surtax, which means capital gains tax rate for wealthy investors will top out at 43.4%. Capital gains tax rates for the wealthy live in California and New York could exceed 50%

    The White House has announced a corporate tax hike plan, which plans to use the increased tax revenue for a $2.25 trillion infrastructure-based "American Jobs Program." Other measures discussed by the Biden administration in recent weeks include raising estate taxes on the wealthy. Biden has warned that those earning more than $400,000 a year may have to pay more in taxes. Some of the proceeds from the tax increase will go toward social spending in the American Families Plan.

    Republican lawmakers support keeping the tax cuts act by former President Donald Trump in 2017, arguing that the current capital gains tax framework can encourage savings and boost future economic growth. Democrats argue that the current capital gains tax rate primarily helps high-income earners who gain their wealth through investment rather than wages, resulting in the wealthy being taxed lower than their employees.